Iris Clothings Limited (NSE: IRISDOREME), a readymade garment company engaged in designing, manufacturing, branding, and selling garments for kids wear, announced their
financial results for the Fourth quarter and year ended March 31, 2024
Commenting on the Company’s performance Mr. Santosh Ladha, Managing Director of the Company said “In the 2024 fiscal year, our company witnessed substantial growth in both revenue and profits, supported by an advantageous cost structure and the strategic growth of our distribution network, which included 70 new partners and an enhanced range of products. Throughout the year, we concentrated on boosting the proportion of the high margin infant wear segment in our revenue mix, where we aim to further increase our presence. The acquisition of the Disney product license has significantly augmented our product offerings. Our digital operations, especially in the B2B sector, along with our steadfast export business, have maintained strong performance during FY24.
Looking ahead, we are initiating an ambitious plan to expand our Exclusive Brand Outlets (EBOs), with intentions to inaugurate 4-5 EBOs in the first quarter of FY25 and over 15 throughout the year. We are also keen on growing our Franchise Stores, for which we have already begun to see considerable interest. The establishment of EBOs and Franchise Stores will fortify our brand presence in the country and advance our high-value retail segment. With the current favorable market conditions and a well-defined strategic direction, we are well-positioned for another year of substantial growth.”
Total revenue stood at ₹421 Million a year-on-year increase of 12% and sequential growth of 79%. The growth was driven by the strong traction in demand, especially in infant wear, along with the addition of new distributors during the quarter. Additionally, the company’s new investments in EBOs have significantly contributed to the growth. EBITDA for the quarter was ₹71 Million, a remarkable increase of 34% over the previous year, reflecting healthy margin of 17%. Improved profitability driven by stabilising raw material prices
Profit After Tax (PAT) was ₹35 Million, a significant increase of 56% compared to the same last year and sequentially surged by 75%, with PAT margins at 8.3%. In FY25, the company aims to open ~15+ or more new Exclusive Brand Outlets (EBOs) to establish a robust retail distribution network, along with the introduction of new Franchise Stores in the foreseeable future. The company further added, “We are concentrating on diversifying our product portfolio by adding a line of children’s innerwear, we plan to broaden our geographical reach by bringing on board new distributors, thereby strengthening our brand’s market visibility.”
Iris Clothings Limited is a fast-growing readymade garment company that is primarily engaged in designing, manufacturing, branding and selling garments for kids wear under its brand name DOREME in India. The Company delivers a broad range of affordable and good quality apparels for infants, toddlers, and children in their pre-teens, serving both their indoor and outdoor requirements. It has been in operations for over 17 years and continues to add new product lines by employing the best-in-class technology across its value chain.